Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
The teams winning Gold at both the Olympics and in macro markets this month (we went from Bearish on Gold in SEP 2020 to Bullish here in JUL 2021) don’t do the Linear Econ thing. We do the multi-factor, multi-duration thing.
Other than Gold’s recent breakout confirming the #Quad2 to #Quad3 US economic Phase Transition, what’s up?
A) QUALITY, as a US Equity Factor Exposure, was +0.9% yesterday to +4.3% in July
By “quality” I mean quality balance sheets or LOW DEBT to EV (enterprise value)… or Suni Lee’s Hmong family cheering section on Zoom last night (so good, Lou-lou, so good!).
Like Smaller Caps, Low QUALITY, or HIGH DEBT to EV companies in the SP500, are also down -1.7% for July. *Power User Note: these Factor Exposures are scored as Top vs. Bottom Quartiles of SP500 companies.